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GLOBAL MARKETS-Oil slides, caps gains on Wall Street

Published 2016-08-09, 04:22 p/m
© Reuters.  GLOBAL MARKETS-Oil slides, caps gains on Wall Street
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* U.S. stocks edge up as S&P 500 hits intraday record

* Global stock index touches year high; Germany's DAX soars

* Sterling falls after Bank of England policymaker comments

* Oil slips as global glut offsets U.S. crude draw forecast (Updates with close of U.S. markets)

By Lewis Krauskopf

NEW YORK, Aug 9 (Reuters) - Oil prices slipped on Tuesday amid worries about a stubborn global petroleum glut, weighing on energy shares and limiting gains on Wall Street after the S&P 500 and Nasdaq ticked up to intraday record highs.

Wall Street eked out gains following a strong session for European stock markets, with Germany's DAX index .GDAXI jumping 2.5 percent to its highest of 2016.

MSCI's all-country world index .MIWD00000PUS rose 0.5 percent and touched its highest level since late August of 2015.

The pound fell for the fifth day in a row after a Bank of England policymaker said the central bank will probably have to loosen monetary policy further if the U.K.'s economy worsens. The Bank of England cut interest rates last week for the first time since 2009 in the wake of the country's vote to leave the European Union. bond yields low in developed economies as central banks maintain accommodative monetary policies, investors have sought equities for yield, particularly stocks with high dividend payouts.

"We're probably going to consolidate and then head higher," John Canally, chief economic strategist for LPL Financial, said of the U.S. stock market. "The odds of a U.S. recession are low. The odds of a global recession are low. Central banks are cooperating."

The Dow Jones industrial average .DJI rose 3.76 points, or 0.02 percent, to 18,533.05, the S&P 500 .SPX gained 0.85 point, or 0.04 percent, to 2,181.74 and the Nasdaq Composite .IXIC added 12.34 points, or 0.24 percent, to 5,225.48.

Gains in healthcare .SPXHC and tech .SPLRCT sectors were offset by energy .SPNY share declines.

After more than a year without setting new records, the benchmark S&P 500 consistently has been reaching new peaks after breaking to an all-time high a month ago.

"The important thing is that the market continues to make new highs, albeit maybe intraday and maybe incrementally small, but the trend of the market is intact," said Bucky Hellwig, senior vice president at BB&T (NYSE:BBT) Wealth Management in Birmingham, Alabama.

The pan-European FTSEurofirst 300 index .FTEU3 gained nearly 1 percent, rising for a fifth straight session, helped by well-received earnings reports from reinsurer Munich Re MUVGn.DE and telecoms group Altice ATCA.AS . pound GBP= fell 0.3 percent against the dollar and touched its lowest level in about a month.

Against a basket of currencies, the dollar .DXY fell 0.3 percent after four days of gains. The greenback was 0.5 percent weaker against the Japanese yen JPY= . futures settled lower as worries about a stubborn global petroleum glut offset forecasts for a weekly drop in U.S. crude inventories. crude LCOc1 settled down 41 cents, or almost 1 percent, at $44.98 a barrel. U.S. West Texas Intermediate crude CLc1 fell 25 cents, or 0.6 percent, to settle at $42.77.

Longer-dated U.S. Treasury prices rose after a weak report on U.S. productivity and a reverse auction in which the Bank of England failed to meet its long-dated bond purchasing target boosted the appetite for U.S. government debt. 10-year Treasury notes US10YT=RR rose 13/32 in price to yield 1.5419 percent.

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